Media Joint Ventures
Purchasing television airtime requires a substantial amount of upfront capital. It is therefore common to seek joint ventures to finance your media buys.
Entering into a joint venture with a TV station simply means that the station is willing to extend you the airtime in exchange for a percentage of your sales. Or they will finance you for a flat fee based on units sold or inquiries generated during each airing.
Since TV stations rarely advertise this aspect of their business, you may have to call a number of them to find those who accept per order (PO) or per inquiry (PI) deals.
There are also media brokers who put together similar deals. Service bureaus who broker turnkey infomercial projects also have access to TV stations that will do PO/PI deals. See the listings at the end of this Guide.
Regardless of which route you take, you will be required to produce customized material that shows an 800 number exclusive to the TV station on which your material is being aired. This will allow both you and the station to track the number of leads or sales generated by each airing.
If you have a lead generation DRTV spot, some TV stations, particularly those with huge inventories of unsold commercial time, will accept payment based on the actual number of leads each airing of your ad generates.
Per inquiry deals are usually confined to 1 and 2-minute DRTV spots. TV stations seldom extend half-hour airtime for a lead-generation infomercial. If they do, however, expect to pay a premium for each inquiry you generate with each airing.
Some stations may require a guarantee to run your DRTV spot on a per inquiry basis. For example, if you agree to spend $1 for each inquiry, the station may require you to give them $300 in advance until you've generated the equivalent of 300 leads.
Per order deals are usually available for both DRTV spots and half-hour infomercials. With per order advertising, the station may charge a fixed amount for each unit sold or a percentage - between 30% and 75% - of the gross value of the product.
As with per inquiry deals, some stations may want a guarantee before they air your infomercial or DRTV spot. The guaranteed amount is usually based on the percentage the station expects to earn from the selling price of your product.
For example, if your product sells for $100 and the station wants 50%, the station will want a guarantee based on $50 per unit. If the station asks for $1,000 as a guarantee, it will run your infomercial or DRTV spot until you've sold 20 units.
If you've been in mail order for more than a month...chances are you've been ripped off by one or more ad sheet printers. This report won't make you a mail-order genius but might keep you from loosing your shirt prematurely.
Have you placed your display ad in a national magazine with over 20 million readers, then waited for the orders to pour in? But the days go by and there is little or no responses?
When you have accumulated sufficient knowledge from preparing your own circulars and from co-publishing magazines and ad sheets of others, you may want to become a publisher.
There have been entire volumes written on mail order selling. For printed information, the best way to learn HOW & WHERE to advertise is to go to your newsstand and check through all the magazines carrying large numbers of classified and space ads.
What is a Big Mail? If you are a total beginner to the mail order world, you will have no idea what the term means. Before I knew better, I used to think a Big Mail was just a big envelope containing some type of free samples.
The opportunities for getting free advertising for your product or services are limited only by your own imagination and energies.
This method of getting free printing is currently being used by several different mail dealers. It works! Here's the plan: Run an ad similar to this in any mail order magazine:
Regardless of what you're trying to sell, you really can't sell it without "talking" with your prospective buyer. An in attempting to sell anything by mail, the sales letter you send out is when and how you talk to your prospect.
Here are some interesting results of a study conducted on readerships of magazine ads. Most of the stats are from Starch INRA Hopper, Inc and other studies.
Most business beginners think Direct Mail means purchasing a mailing list and mailing an advertising flyer to a bunch of folks they know absolutely nothing about. This IS NOT what Direct Mail marketing is.